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Coldwater Creek Shares Fall 4% On Profit Warning

Shares of apparel retailer Coldwater Creek fell more than 4% Friday after the company warned late Thursday that its earnings and revenue this year would be below analyst expectations.

Coldwater Creek expects 2007 earnings will be in the range of 55 cents to 63 cents a share.

On average, analysts surveyed by Thomson Financial were expecting earnings of 80 cents a share.

The company's full-year forecast includes 4 cents a share of costs for the company's test of Coldwater Creek - The Spa locations. It also includes 5 cents a share in costs for stock-based compensation.

For the first quarter, Coldwater Creek said it sees earnings of 7 cents to 9 cents a share, compared with analysts' consensus profit of 14 cents.

It forecast second-quarter earnings of 9 to 11 cents a share, versus analysts' call for per-share earnings of 15 cents.

For the third and fourth quarters, Coldwater Creek forecast earnings of 19 cents to 21 cents and 20 cents to 22 cents a share, respectively, compared with analysts' average calls for
per-share earnings of 22 cents and 27 cents.